Commonly Asked Questions

What is the Goods and Services Tax?

What is the Goods and Services Tax?

The Goods and Services Tax (GST) is an integrated tax, merging most of the existing indirect taxes such as Service tax, VAT etc into a single system of taxation. GST works on the concept of “One Nation One Tax”. This is one of the biggest tax reforms in India since Independence and is proposed to be implemented from July 1, 2017.

From when will GST be made applicable?

From when will GST be made applicable?

GST is proposed to be implemented from July 1, 2017.

Is GST payable on the premium of all my Insurance Policies?

Is GST applicable of all my Insurance Policies?

Yes, except insurance plans like the Pradhan Mantri Jeevan Jyoti Bhima Yojana (PMJJBY) in which the indirect tax exemption is expected to be continued.

Is GST applicable only on Insurance Policies?

Is GST applicable only on Insurance Policies?

No, GST is applicable for all goods and services except those which are specifically exempted.

Is GST in addition to the existing taxes I am paying on my Insurance Policies?

Is GST in addition to the existing taxes I am paying on my Insurance Policies?

GST is an indirect tax which replaces the current service tax & cess on premiums.

Will I have a view on the GST component I am paying in my Premium?

Will I have a view on the GST component I am paying in my Premium?

Yes. The details of GST paid by you on premiums would be disclosed separately on the premium receipts given to you.

If I pay my premium in advance, will GST still be applicable to me?

If I pay my premium in advance, will GST still be applicable to me?

If you are paying the premium for a policy for which premium is overdue or due for payment till June 30, 2017, then GST will not be applicable to you.

If your policy premium is due for payment on or after July 1, 2017, which is the proposed implementation date for GST, then GST will be applicable on your premium. In case you pay the premium in advance, the balance amount due if any, on account of GST will have to be paid after the GST implementation date.